Chief executive Bill McDermott told a media conference after the company announced results for the fourth quarter of 2018 this week: “We are going to move our people and our focus to the areas where the new economy needs SAP the most: artificial intelligence, deep machine learning, IoT, blockchain and quantum computing."
The cuts are expected to affect its Australian and New Zealand operations as well.
However, the workforce is expected to grow from the current level of 96,5000 with the sackings expected to cover job reassignments, early retirement and separation packages, The Wall Street Journal quoted McDermott as saying.
“This is a business model built for scale, growth and resilience,” McDermott said. “We will remain the fastest-growing business software company in the cloud at scale.
“Think about our core business as more focused on the value drivers,” he said, referring to the the S/4HANA enterprise resource planning system, Leonardo machine learning platform and the customer experience management business which was boosted by the purchase of Qualtrics International in November 2018.
“We’re going to double down on these things. We’re going to be in every market where we can get leverage.”